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Digital Oilfield Market Size By Process (Production Optimization, Reservoir Optimization, Drilling Optimization), By Service (Instrumentation & Automation {Security Systems, Smart Wells, Wireless Systems, Distributed Control System, SCADA}, Information Technology {Software, Computer Equipment & Application Hardware, IT Outsourcing Services}), By Application (Onshore, Offshore), By Technology (IoT, Advance Analytics, Robotics, Cloud Computing, Mobility), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI1240
  • Published Date: Nov 2020
  • Report Format: PDF

Industry Trends

Digital Oilfield market size surpassed USD 26 billion in 2019 and is projected to register over 7% CAGR through 2026. Rising focus toward operational management followed by decrease in operating and capital expenses subject to the adoption of smart digitalized system and solutions will segment the industry growth. Ongoing advancement toward wireless technologies, data analysis, mobility, and collection platforms have facilitated substantial enhancement in the management and performance of oil and gas platforms.

Digital Oilfield market

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Adoption of advanced technologies across the oil & gas industry will propel the business scenario

Increasing E&P activities across onshore and offshore sector fueled by ongoing oil price recovery will boost the industry growth. The digital oilfield market share is anticipated to grow on account of increasing requirement of advanced technologies for optimization and management of the oil & gas operations.

Declining production from conventional wells coupled with growing inclination toward devising an economic well recovery process will complement the business scenario. In addition, rising O&G production across deep sea geographies will require real time monitoring and automated operations which will accelerate the industry outlook.

Ongoing R&D investments to enhance the recovery rate of un-profitable field will complement the digital oilfield industry trends

Digital Oilfield Market

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Production optimization from digital oilfield market is anticipated to surpass USD 9 billion by 2026. Integration of field data with existing production management application, to facilitate a precise and reliable analysis of the production parameters will further augment the process demand. Significant technological development has improved the recovery rate of a large number of fields which were declared economically unfeasible and non-profitable. Moreover, robust investment toward upstream sector coupled with increasing discoveries across the Flemish Pass basin and South African basin will propel the overall market share.

Digital oilfield market by reservoir optimization is projected to grow at a rate of over 8% through 2026. Increasing deployment of enhanced oil recovery systems followed by rising number of mature gas fields across Middle East will fuel the product adoption. In addition, availability of enhanced solutions including reservoir monitoring control, development planning coupled with equipment management including actuating devices, sensors, and smart alarms have resulted in optimization of reservoir expansion.

Shifting trends toward adoption of IT-based systems across the oil and gas infrastructure will boost the digital oilfield industry statistics

Increasing applicability of security systems, smart wells, distributed control system, and SCADA to improve production efficiency and analyze the real time data will foster the demand for instrumentation and automation solutions. For instance, ABB launched cloud-based SCADA visualization system allowing both small and big operators to gather information of their upstream onshore assets. In addition, rising concerns toward cyber security coupled with growing adoption of wireless networks to enable personnel safety as well as operational efficiency will propel the product demand.

Information technology segment is anticipated to surge on account of growing demand for continuous yield tracking, real-time decision support, and enhancing ROI. Leading oil and gas players are increasing their IT expenditure in order to improve their business processes and asset management solutions. Ongoing industry collaborations coupled with increasing R&D investments toward IT strategies development will positively stimulate the digital oilfield industry landscape.

Growing investments toward offshore oil & gas sector will accelerate the technology demand

Accelerating E&P activities on account of recovering oil prices will complement the digitation of onshore fields. Growing energy demand coupled with rising oil consumption across developing nations will accelerate the business growth. In addition, ongoing investments toward green field projects followed by digitization of brownfield sites will augment the industry landscape. Moreover, enhanced production across the North Sea followed by the U.S. shale boom will support the business expansion.

Rapid discoveries of new oilfields across the Permian Basin along with development of several halted projects will fuel the offshore digital oilfield market statistics. Moreover, emerging nations have defined their ambitious plans to boost domestic production and reduce their import dependency which will sway the product demand. Furthermore, ongoing strategic collaborations to improve the technological offerings will enhance the industry outlook.

Integration of artificial intelligence to minimize safety risks and enhance the operational efficiency will fuel the business scenario

Wide applicability of IoT based systems to collect the data from ongoing operations across smart wells, drilling and reservoir monitoring sites will foster the industry scenario. Ongoing industry revolutions along with increasing awareness toward integration of oil and gas sector with cloud-based technologies will drive the digital oilfield market size. Furthermore, introduction of cloud computing across the industry have facilitated the operators toward the usage of sensors and big data analytics which in turn will optimize the oilfield lifecycle from discovery up till the well abandonment.

Advance analytics segment exceeded USD 3 billion in 2019. According to Accenture, in 2019 major leading players across the oil & gas sector increased their investment by 49% toward cybersecurity management. Paradigm shift toward utilization of AI across the upstream sector to validate well integrity and minimize safety risks will further propel the product demand. In addition, advancement in interpretation and data collection systems to monitor continuously running processes will encourage the product adoption.

North America market will dominate the overall industry scenario

North America Digital Oilfield Market

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North America digital oilfield market forecast is register over 7% CAGR through 2026. Re-engineering of technological solutions to enhance optimization and management of the oil & gas operations will drive the business growth. Increasing oilfield discoveries and domestic production have augmented the business landscape. Moreover, refurbishment of oil and gas platforms across the offshore sector to integrate advanced AI and machine learning solutions will further sway the product demand.

U.S. digital oilfield industry is projected to grow on account of accelerating energy demand followed by paradigm shift toward technological advanced solutions. According to Baker Hughes, in 2019, average number of oil rig counts across the U.S. was 944 which is 7% increase when compared to 2017. Ongoing investment by public and private partners toward the upstream and midstream sector will further propel the technology adoption.

Ongoing mergers & acquisitions will act as a focal point for market players

The ongoing impact has resulted into a delay of projects along with decline in the overall investments toward the new and aging fields which in turn will affect the digital oil field industry outlook. However, the industry is set to regain its lost strength in second half of 2020 witnessing the reduction of the impact of COVID – 19.

The eminent market participants operational across digital oilfield market includes Schlumberger, Weatherford, Halliburton, Rockwell, National Oil Varco, ABB, Siemens, Schneider, Kuwait Oil Company, Accenture, General Electric, Intel, Emerson, Honeywell, Pason, Sinopec Oilfield, Cisco, Wipro, Oleumtech, EDG, Enovate, Katalyst, CGG, DIGI, Redline and Infosys.

Digital oilfield market research report includes in-depth coverage of the industry with estimates & forecast in terms of USD from 2015 to 2026, for the following segments:

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By Process

  • Production Optimization
  • Reservoir Optimization
  • Drilling Optimization
  • Others

By Service

  • Instrumentation & Automation
    • Security Systems
    • Smart Wells
    • Wireless Systems
    • Distributed Control Systems
    • SCADA
  • Information Technology
    • Software
    • Computer Equipment & Application Hardware
    • IT Outsourcing Services
    • Others

By Application

  • Onshore
  • Offshore

By Technology

  • IoT
  • Advance Analytics
  • Robotics
  • Cloud Computing
  • Mobility
  • Others

The above information has been provided for the following regions and country:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Russia
    • Norway
    • UK
    • Denmark
    • Italy
    • Germany
    • Netherlands
    • France
  • Asia Pacific
    • China
    • India
    • Indonesia
    • Malaysia
    • Thailand
    • Australia
  • Middle East & Africa
    • Saudi Arabia
    • Iraq
    • Kuwait
    • UAE
    • Qatar
    • Oman
    • Nigeria
    • South Africa
  • Latin America
    • Brazil
    • Argentina


Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

In 2019, the global industry for digital oilfield size exceeded USD 26 billion and may register 7% CAGR through 2026.

Production optimization segment may exceed USD 9 billion by 2026 and will be lucrative for the market growth given that integrating field data with current production management application will help facilitate a reliable evaluation of production parameters.

Global market for digital oilfield from reservoir optimization segment may record 8% through 2026 due to rising deployment of enhanced oil recovery systems and increasing number of mature gas fields.

Advance analytics segment surpassed USD 3 billion in 2019 and will majorly push the industry growth owing to the shift toward AI utilization across the upstream sector.

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Premium Report Details

  • Base Year: 2019
  • Companies covered: 27
  • Tables & Figures: 601
  • Countries covered: 27
  • Pages: 380
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